Correlation26 Feb 2020 09:07
All, there are a couple of things you need to remember.
1. 88e is intrinsically linked to the price of oil, which has fallen over the past few days due to Coronavirus worries on it impacting global growth, and a Chinese slowdown
2. The rig being in place is good progress, but not new news. I wouldn't expect the share price to move on this.
3. The stock market globally is getting a pounding, and although 88 energy isn't technically correlated to stock markets, the beta of 88e is higher (+1) than the FTSE.
4. Energy companies have had a tough time, with most of the oil majors falling over the past year.
Be patient with this - any short term movement in the price is irrelevant until the spud.